Crypto License in Italy

Crypto-currencies continue to be actively implemented and expanded in the modern world. A lot of capital-holders are interested in joining the crypto-environment and developing their business in this direction. This is due to the fact that this area is quite productive, profitable, effective and rapidly developing. Italy is one of countries supporting crypto-currencies and trying to accompany the development of the blockchain space in the country.

Our specialists have vast experience in working with crypto business and licensing of such structures. We will provide you with comprehensive support in the development of your crypto business, accompanying you at all stages of this path. Our experts are also specialists in other areas, in particular, licensing of Forex brokers, gambling companies and financial structures.

General Information

Italy crypto license requirements

Italian regulator – OAM – has established certain requirements and rules for crypto structures and AML policies that must be applied when conducting this business.

1. One of the main points is that VASPs must be registered in a special register of crypto firms. Under the proposed provisions, registration in the registry is required if firms offer any service related to digital assets in the country.
2. Any VASP from another EU country must have a permanent establishment or a stable organization in Italy to be able to register as an approved VASP.
3. Obtaining the appropriate license permission within the jurisdiction. The presence of such a license or registration in the official registry serves as confirmation that the activities of the exchange, including its internal policies, are fully consistent with local laws. In particular, the law on the prohibition of money laundering and the financing of terrorism. In addition, the permission confirms that the exchange conducts KYC identification of users.
4. Reputational requirements, such as no valid criminal record, have also been set for VASP’s senior management, shareholders and beneficial owners.

Registered firms must submit quarterly reports to OAM on transactions they have conducted in Italy. In particular, they must provide:

• identification data of customers, such as name, first name, place of residence, tax code, VAT number, if any, and details of an identity document;
• summary of all transactions for each client, including the value in euros on the date of the last day of the respective quarter;
• information about the total balance of legal and virtual currency, as far as each client is concerned;
• the number of conversion operations between virtual currencies.

General requirements for documentation, internal organization of firms, representatives of management positions and employees are as follows.

1. Having sufficient capital to run the business for at least 6-12 months.
2. Compliance with strict KYC-regulations.
3. A detailed business plan describing prospects for crypto-business and potential benefits.
4. Policies and mechanisms adapted to the conduct of business, in particular, ensuring the security of operations and customer funds, compliance with AML, and so on.
5. Confirmation of the origin of funds that the entrepreneur intends to use to conduct crypto activities.
6. Resumes and information about the professional qualifications of the owners and employees.
7. Confirmation of the presence of the company’s office.
8. Company formation agreement.
9. Extract from the state register of crypto companies.
10. Confirmation of opening a corporate account for commercial use.

Our experts are ready to help you prepare and collect the necessary documents, and bring your company into full compliance with local requirements. We can also provide you with professional advice on licensing other areas of activity in many jurisdictions of the world, in particular, obtaining a Forex broker license in Singapore, Malta, the Czech Republic, Great Britain, Estonia and other countries.

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Types of cryptocurrency licenses in Italy

Under MiCA, Italy no longer operates a simple national menu of separate crypto licences. Instead, the relevant CASP authorisation covers specific crypto-asset services, such as exchange, custody, transfer, execution of orders, operation of a trading platform, advice, and portfolio management, depending on the approved scope.

Procedure for obtaining crypto-license in Italy

To obtain cryptocurrency license in this jurisdiction, you need to adhere to next-mentioned.

1. Register a company in the jurisdiction, acquire the minimum authorized capital required for this type of activity.
2. Provide substance (physical office, personnel, accounting). It is important that there is a staff member responsible for implementing and monitoring the implementation of AML rules and regulations.
3. Open a bank account.
4. Prepare a package of documents provided by the licensing authority.
5. Disclose information on operating expenses and capital resources within 6-12 months of operation.
6. Submit license application.

Our experts will help you to collect the appropriate package of documentation and accompany you at every stage of licensing, all the nuances are taken care of.

Taxation of crypto currency companies in Italy

Resident crypto enterprises must pay income tax in Italy on all income, including those received abroad. Non-resident legal entities pay according to the profits received from economic activities in the country (from Italian sources).

1. The general VAT rate in Italy is 22%.
2. Real estate tax is one of the local obligatory fees. This is paid annually. The rate can vary from 0.4 to 0.7% of the cadastral value of real estate, depending on the specific region.
3. Income tax is 24.5%.

Have any questions?

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